Subject: Tax question
Date: Fri, 19 Jul 2002
I saw your Web site and am interested in finding out more about your business and service. I have a tax question about residential property and wonder if you can help. I have a second home in the same city as my primary residence and I let my relatives live there for free. If I sell this second home, does the rule $250,000/$500,000 profit apply to it? Is my second home treated as a vacation home by the IRS even though it is in the same city and close to the first home? Thank you very much if you can answer.
Date: Wed, 31 Jul 2002
No. The exclusion only applies to your principal residence, when you meet certain requirements I'm not going to detail here.
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